ETH last night was at some of the most extreme oversold conditions we have seen in 14+ months.
Hourly RSI single digits, 4 hour RSI 12, Daily RSI 17.
We clearly have an influx of supply as ICO projects are dumping and adding to the panic.
The bears have complete control but I personally would not dare enter a short down at these levels.
There will be a sweet daily oversold bounce opportunity as soon as the supply and demand scales flip, and the selling dries up.
BTC will have a significant impact on the short term action, as a bounce without BTC has certainly been rare.
I currently have a small ETH position from last night that I will look to trade around and lower my cost basis of (down to $271 avg now), to ensure I have at least a small piece when the daily bounce does begin. Until then I am not looking to add on weakness at this point.
Hourly EMA resistance test this morning.
Hourly RSI single digits, 4 hour RSI 12, Daily RSI 17.
We clearly have an influx of supply as ICO projects are dumping and adding to the panic.
The bears have complete control but I personally would not dare enter a short down at these levels.
There will be a sweet daily oversold bounce opportunity as soon as the supply and demand scales flip, and the selling dries up.
BTC will have a significant impact on the short term action, as a bounce without BTC has certainly been rare.
I currently have a small ETH position from last night that I will look to trade around and lower my cost basis of (down to $271 avg now), to ensure I have at least a small piece when the daily bounce does begin. Until then I am not looking to add on weakness at this point.
Hourly EMA resistance test this morning.
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